Shares of ViaSat Leaps on Possible Deal with American Airlines
Shares of Carlsbad, California based, ViaSat Inc. soared almost twelve percent on Monday on assumption that the company might be chosen by American Airlines for its in-flight supply of Wi-Fi is certain commercial jets.
A contract dispute between American Airlines and Chicago-based Gogo Inc., its present in-flight Wi-Fi provider could be a reason that might open opportunities for ViaSat. The Dallas based carrier plans to switch to ViaSat for a number of its flights at home.
Shares of Chicago, Illinois based Gogo Inc. dropped as much as forty three percent after the news. American Airlines Group Inc. informed Gogo that it mightswitch to its competitor ViaSat for in-flight Wi-Fi provider as their services are faster and cheaper. Gogo shares dropped to $7.90 early in the morning in New York and by 12:39 p.m. the shares were trading at $9.39. ViaSat turned to be a gainer as, the Internet connectivity service providers shared scaled eleven percent to $69.34. The company provides internet connectivity to airlines like United Continental Holdings and JetBlue Airways Corp. This incident reflects how important Wi-Fi availability in flights becoming for airline passengers. A recent survey by Honeywell showed that two-thirds of the passengers said accessibility of Wi-Fi mattered to them while choosing a flight.
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